Council to coordinate implementation of corporate social responsibility projects

AMMAN — As spending on corporate social responsibility (CSR) in Jordan ranges from JD60 million to JD90 million per year, MPs and company representatives in Jordan on Tuesday launched a consultation body to ensure efficiency and avoid duplication in projects.

The consultation council, which will comprise MPs, NGOs and members of major companies working on CSR projects, seeks to regulate the process of implementing these projects, said Jawad Abbassi, chairman of ICT Association of Jordan (int@j), which held a meeting on Monday to discuss the formulation of the council.

A study conducted by int@j in cooperation with partners in the field of CSR, showed that companies listed on the Amman Stock Exchange spend some JD27 million annually, or 3 per cent of their profits, on CSR projects and programmes across Jordan.

The rest of the overall volume of amounts allocated for CSR annually in Jordan is spent by major companies that are not listed on the bourse, Abbassi told The Jordan Times, reviewing the results and recommendations of the meeting that brought together MPs, officials and CEOs of several major companies in Jordan.

“The idea behind establishing the council, which will be an informal body, is to ensure that there is no overlap as some NGOs or entities seeking funds might get funds for their project from several companies, thus depriving other entities from getting funds,” Abbassi said.

The study, e-mailed to The Jordan Times, showed that CSR spending by companies is mainly focused on education, health, development of societies, youth, sports and the environment.

“Maximising Jordanians’ utilisation of CSR projects requires effective coordination to ensure efficient spending of money allocated for CSR… having such a body will help direct spending towards development projects whose results are measurable,” MP Mustafa Hamarneh, who took part in the meeting, said in a statement e-mailed to The Jordan Times.

Commenting on the formation of the council, economist Hossam Ayesh said it should not interfere in “what projects need to be spent on”.

“The role of the council should only be limited to coordination and ensuring that no duplication happens,” Ayesh told The Jordan Times.

“The council should be active in engaging with local NGOs in different governorates to check on local community concerns in order to implement sustainable projects that meet their needs,” he noted.

The economist added that the council should recommend implementing unconventional projects in different areas based on the needs of communities and report this to donors.

To ensure its effectiveness, he said, the council needs to follow up on the implementation of CSR projects and their impact.